7 Prominent Companies that Went Bankrupt in 2023

Last Updated on December 26, 2023 by Robert C. Hoopes

Title: Major US Retailers Struggle in 2023, Filing for Bankruptcy Amidst Pandemic Aftermath

In a shocking turn of events, several prominent US retailers and businesses have succumbed to the economic fallout caused by the Covid-19 pandemic, grappling with high costs, supply shortages, and fierce competition. Let’s take a closer look at some of the iconic names that faced significant challenges in 2023.

WeWork, the renowned coworking-space company, made headlines when it filed for Chapter 11 bankruptcy in November. The company’s financial troubles were not limited to the pandemic, as it had been grappling with debt repayment issues even before the global crisis. WeWork’s failed attempt at an initial public offering (IPO) and internal leadership conflicts added to its woes.

Rite Aid, a well-established drug store chain, found itself in dire straits in October. Mounting debt and intensifying competition from alternative pharmacy chains like Amazon, Walmart, Target, and Costco eventually led the company to file for bankruptcy protection.

April marked a significant blow to the retail industry as Bed Bath & Beyond filed for bankruptcy and subsequently closed down all 360 of its stores. However, the brand found a second chance as Overstock.com stepped in and acquired it. Bed Bath & Beyond was reborn as BedBathandBeyond.com, leveraging Overstock.com’s online business model while incorporating the former’s popular branded products.

Amidst the flurry of bankruptcies, Tuesday Morning, a beloved home goods store, endured its second bankruptcy within three years. The company filed for Chapter 11 in February and declared the closure of its 200 stores in May, leaving consumers bereft of this once-thriving shopping destination.

Party City, the largest party supplier in the US, suffered a similar fate in 2023. The company’s bankruptcy, primarily caused by competition from big-box retailers, skyrocketing costs during the pandemic, and a helium shortage, led to its financial downfall. Fortunately, Party City managed to exit bankruptcy in September after canceling nearly $1 billion of debt.

SmileDirectClub, a telehealth orthodontics company that aimed to offer affordable alternatives to traditional orthodontic care, faced insurmountable financial difficulties and ultimately filed for Chapter 11 bankruptcy in December. Unfortunately, the company’s vision for accessible orthodontic solutions fell short in the wake of persistent economic challenges.

The electric vehicle manufacturer, Lordstown Motors, also experienced a turbulent year, eventually resorting to Chapter 11 bankruptcy in June. The company accused its largest shareholder, Foxconn, of fraud and failing to meet promised investments. The breakdown of their partnership further exacerbated Lordstown Motors’ financial struggles.

In the wake of the Covid-19 pandemic, these high-profile bankruptcy filings illustrate the profound impact on retailers and businesses, shattering once-thriving industries. As the world continues its journey towards recovery, it remains crucial to adapt and navigate the evolving landscape, offering an essential reminder of the importance of resilience and adaptability for businesses in the modern era.